Author
Topic: Dealer Price Sales Antics (Read 1132 times)

A lot of newcomer threads relate to used pricing. We drove to the dealer to see this Class C floorplan. I had checked NADA to find their base price range as low $43,850 - average $52,850. MSRP $72,567.

We bought a brand new TT two years ago. I found that dealers tried to push used models at the same price or more than we paid for our new TT. My impression at the time was that many of the used models were not only expensive but they were lower end than what we bought. I know and understand the mantra about buying used to save on depreciation but I suspect there are a good number overpaying for used models. I also like to negotiate and I know many people are not comfortable negotiating.

$52,850 is normal retail on NADA. It is just overpriced as all RVs for sale usually are. This gives them plenty of wiggle room for a discount or a trade in. When shopping for an RV remember you gotta kiss a lot of toads before you kiss a prince.

Surely this is not your first exposure to advertising hyperbole? Like jewelry stores offering 75% off? Or "Today only!" prices?

Nope! My second career was working the office side of a boat dealership. Their BLOWOUT PRICES were in fact the regular selling price. The WAS price was always inflated as much as the owner thought he could get away with before lightning struck.

Related to this topic, if anyone needs a mattress I've noticed there are several sales going on in our part of town

Here is Florida we have these stupid billboards announcing mattress stores are ripping you off and a web address. Well I am not buying a mattress online, I want to go to a rip off mattress store and actually lie on one before I buy one.

RV dealer selling and pricing has become much like the proverbial used car lot. I think we have ourselves to blame, at least in part, because buyers have learned (online) that they should demand huge discounts and they shop nationwide to get even a few extra discount dollars. Dealers quickly learned that lowball pricing was the way to gain sales, and that many buyers didn't look much beyond the percentage discount or distinguish between a real factory MSRP and a dealer list price. This ferocious pricing war also led to things like add-on dealer fees and charges for PDI or prep that used to be included in the selling price. Some buyers get distracted by the discount and fail to notice that the bottom line, out-the-door price is actually higher than at another store that did not advertise such steep discount pricing.

We also see much lamentation about shoddy PDI and prep work, but again, if the last dollar has to be squeezed out of each deal, the dealer is going to cut his costs to the bone to make that possible.

After reading section 233.3, we both must be. I don't think an RV is ever sold at list price except on paper. The list price gives the dealer's finance manager a lot of leeway when trying to finance an RV. That's why a lot of folks are underwater as soon as they drive off the lot.

Logged

I know you believe you understand what you think I said,But I am not sure you realize what you heard is not what I meant

Showing the customer the invoice means nothing. Dealers get discounts and no cost to the dealer options based on the number of units ordered in advance. Also discounts are given if the dealer is a cash buyer. These are not reflected on the "dealers invoice".

Lets not forget what is called dealer back-end money. The dealer gets a percentage of the APR when the dealers finance broker connects a buyer with a lender. Also the dealer gets a cut when the broker sells the customer extended warranties, credit life insurance, etc.

If you want to ruin a dealers day pay off the unit or refinance with another lender. I think it was within 12 months of the sale. The broker will debt the dealer for the back-end money paid to the dealer.

The rig in question here is used and also a consignment, so the notion of a list price doesn't even enter into it.

There are numerous dodges for 233, e.g. "nationally advertised at..." or simply referring to "MSRP" rather than stating that tit is a normal sales price. If a dealer has a piece of paper in his files that shows he was quoting a price like that last week, e.g. an inventory listing given to his sales staff stating some price, he has perfectly legal grounds for referencing that price as the "regular sale price". The sales staff off course knows that price is inflated for the purpose of giving bigger discounts, and that everybody gets some discount or trade or both, but the regular price is documented.

It pretty much is. 233 is largely unenforceable, in my opinion. It has no clear cut criteria and determining the predominant market price in some area is a major accounting project. And then the FTC has to argue in court that its market area definition and data applies to the particular case, and that the store advertised a price with intent to mislead. It's a extremely difficult argument for them, which is why you rarely see/hear of a FTC action based on 233.

Further, these days, the ready availability of internet discount stores in addition to stix & brix makes the notion of a local market price or a list price a joke.

Related to this topic, if anyone needs a mattress I've noticed there are several sales going on in our part of town

We just completed a 1600 mile run from N Arizona back to Arkansas. All along the way, we saw signs for mattress sales at almost every furniture store. What's with that? Can't anyone sell a mattress at list price anymore?

Oldgator73

We just completed a 1600 mile run from N Arizona back to Arkansas. All along the way, we saw signs for mattress sales at almost every furniture store. What's with that? Can't anyone sell a mattress at list price anymore?

We get our mattresses on Amazon Prime. Getting back to dealerships. Several times I have gone to dealerships because of an ad only to find that what was offered in the ad was no longer available. This happened when we lived in Japan. The overseas bases have new car sales at base exchanges. There was an ad in the base paper for Jeeps for a certain price. I went there and was told they couldn't give me that price. I showed the ad and was told that was a mistake. I wrote up a complaint for the Commander's Hotline and the day after it was printed I got a call from the dealership. I was told I could have any Current year Jeep at the prior year price. When I bought my current truck I took my wife's car to trade in. I was informed by the Internet salesman that they were offering 125% of Blue Book for trade ins. When I got there I was told that only if I bought a high dollar vehicle. $27,000 did not qualify. I started to leave and the sales manager got a little indignant and asked what I wanted. I told him my out the door price including the trade in and said nobody would give me that deal. I told him an out of state dealer already did. I got my deal.

A lot of people trade in their used RV when they buy a new one. Many of those people are upside down on these trade-ins and having an inflated MSRP would give the dealership some ability with the finance company to roll negative equity into the new loan. Car dealerships do the same thing. Depreciation during the first couple of years will tear the stitching out of your wallet.